PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

6 Months Ended

12 Months Ended

Jun. 30, 2024

Dec. 31, 2023

Prepaid Expenses And Other Current Assets Net

PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

Prepayments and other current assets, net consisted of the following:

	As of
	December 31, 2023		June 30, 2024
			(Unaudited)
Loans to a third party (1)	$	581,229	$	906,356
Deductible input VAT		225,735		179,891
Advance to suppliers		20,682		21,467
Prepaid expense		13,073		405
Advance to employee		109		186
Deposit		34,291		-
Total	$	875,119	$	1,108,305

(1) On November 1, 2023, MKD BVI lent US$575,000 to Cetus Sponsor LLC with an annual interest of 6.5%. The loan is used to pay the application fee for the extension of business combination between the Company and Cetus Capital and shall be repaid on the earlier of i) the date on which the Cetus Capital consummates an initial business combination with a target business, and ii) May 2, 2024. The Company is currently negotiating with Cetus Sponsor LLC to postpone the repayment date of the loan to December 31, 2025.   On February 1, 2024, MKD BVI lent US$300,000 to Cetus Sponsor LLC with an annual interest of 6.5%. The loan is used to pay the application fee for the extension of business combination between the Company and Cetus Capital and shall be repaid on the earlier of i) the date on which the Cetus Capital consummates an initial business combination with a target business, and ii) May 2, 2024. The Company is currently negotiating with Cetus Sponsor LLC to postpone the repayment date of the loan to December 31, 2025.   The balance consisted of the principal amount lent to Cetus Sponsor LLC and accrued interest receivables.

MKDWELL TECH INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share data)

6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

Prepayments and other current assets, net consisted of the following:

	As of December 31,
	2022		2023
Loan to a third party(1)	$	-	$	581,229
Deductible input VAT		103,753		225,735
Deposit		-		34,291
Advance to suppliers		18,376		20,682
Prepaid expense		14,645		13,073
Advance to employee		20,844		109
Total	$	157,618	$	875,119

(1) On November 1, 2023, MKD BVI lent US$575,000 to Cetus Sponsor LLC with an annual interest of 6.5%. The loan is used to pay the application fee for the extension of business combination between the Company and Cetus Capital Acquisition Corp. (“Cetus Capital”) and shall be repaid on the earlier of i) the date on which the Cetus Capital consummates an initial business combination with a target business, and ii) May 2, 2024. The Company is currently negotiating with Cetus Sponsor LLC to postpone the repayment date of the loan to December 31, 2025.

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share data)